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On January 1, 2020, Splish Company issued 10-year, $2,060,000 face value, 6% bonds, at par. Each $1,000 bond is converti
Posted: Sat May 07, 2022 8:37 pm
by answerhappygod
- On January 1 2020 Splish Company Issued 10 Year 2 060 000 Face Value 6 Bonds At Par Each 1 000 Bond Is Converti 1 (142.79 KiB) Viewed 30 times
On January 1, 2020, Splish Company issued 10-year, $2,060,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Splish common stock. Splish's net income in 2020 was $459,000, and its tax rate was 20%. The company had 108,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020. (a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $ (b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $1,080,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Splish common stock. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $